1 ACSI American Customer Satisfaction Index TM Measuring Satisfaction with Government Using the ACSI Mexico City, September 2009

2 © NQRC Snapshot of ACSI Established in 1994, ACSI is the only standardized measure of customer satisfaction in the U.S. economy, covering approximately 200 companies in 45 industries and 10 sectors; companies measured account for roughly one-third of the U.S. GDP A quarterly measure of the national economy’s health; complementary to measures such as inflation and unemployment 50+ departments and agencies of the U.S. Federal Government measured on an annual basis Results from all surveys are published quarterly in various media and on the ACSI website,

3 © NQRC T M M E Türkiye Müşteri Memnuniyeti Endeksi Turkish CSIKorean CSI Mexican CSI Colombian CSI Swedish CSI ACSI Methodology Adopted Internationally UK CSI Singapore CSI

4 © NQRC ACSI and Government Satisfaction ACSI measured portions of Federal Government as early as 1994 –Internal Revenue Service measured as part of the ACSI since 1994 In 1999, ACSI chosen as the “gold standard” measure of customer satisfaction by the Federal government Currently more than 200 different government services measured using the ACSI methodology

5 © NQRC Why Measure Satisfaction with Government? Link customer satisfaction with expectations and desired outcomes Benchmark against “best” in business and government Set “baseline” for customer satisfaction and measure progress Provide critical information for annual performance plans to Congress (as required under GPRA) Identify areas for improving quality of service provided to customers Raise trust in agencies and the government overall Enable Senior Executives to meet performance criteria ACSI

6 © NQRC ACSI METHODOLOGY

7 © NQRC ACSI Methodology Customer satisfaction (ACSI) is embedded in a system of cause and effect relationships Measures are general enough to be comparable across agencies, and private sector companies ACSI is measured using multiple indicators Objective: Explain desired outcomes

8 © NQRC ● A component score is a weighted average of the set of attributes, or survey questions, comprising a component or activity. Responses to survey questions are given on a 1-10 scale, which is converted to a scale for score reporting. ● An impact, on the other hand, predicts the increase in satisfaction that would result from a 5-point increase in a component or input score. ● Areas for improvement are those components or activities with a relatively low score and a relatively high impact on satisfaction. In the simplified example shown here, Activity 2 would be a key action area due to its relatively low score and high impact. ACSI 65 Activity 2 65 Activity Impact Score EXAMPLE ACSI Methodology

9 © NQRC Federal Government ACSI Model Customer Complaints Customer Complaints Agency Trust Customer Satisfaction (ACSI) Customer Satisfaction (ACSI) Perceived Quality Perceived Quality Customer Expectations Customer Expectations Customer Service Customer Service Information Process Confidence Recommend Courtesy Professional Clarity Accessibility Ease Timeliness Website Ease Usefulness

10 © NQRC ACSI RESULTS FOR THE U.S. FEDERAL GOVERNMENT

11 © NQRC Aggregate Customer Satisfaction with Federal Government, * *A methodology change in 2007 limits comparability to prior years. Year-to-year trending is recommended.

12 © NQRC 2008 Federal Government ACSI Model Customer Complaints Customer Complaints Agency Trust Customer Satisfaction (ACSI) Customer Satisfaction (ACSI) Perceived Quality Perceived Quality Customer Expectations Customer Expectations Customer Service Customer Service Information Process Confidence Recommend Courtesy Professional Clarity Accessibility Ease Timeliness % Website Ease Usefulness

13 © NQRC How Agencies Utilize ACSI Data Test results against current assumptions Reexamine improvement plans and strategy Report results to Congress, employees, and customers Design and conduct more detailed drill- down surveys on low-performing areas Identify strategic benchmarking partners; identify/adopt “best practices”

14 © NQRC IRS Finding: e-Filers Vastly More Satisfied fewer errors, quicker problem resolution earlier refunds, easy status tracking 23 points 30 points

15 © NQRC Number of e-filers nearly triples in 8 years “We realize we have more work to do, but the survey is just one more indication that the IRS reorganization and its emphasis on customer service are paying off. The satisfaction with IRS e-file won´t surprise any taxpayer who has used it. When they try it, they like it. It is fast, accurate and dependable.” - Charles O. Rossotti, IRS commissioner, December 17, 2001 IRS: More e-Filers

16 © NQRC IRS: Improved Individual Tax Filing Experience IRS hears the voice of the customer… Commitment to customer service Increased awareness and usage of e-filing Customer Satisfaction Up 17 Points All Individual Tax Filers

17 © NQRC Citizen Satisfaction by Department

18 © NQRC Government “Expectations Gap”

19 © NQRC Customer Service Leads the Way

20 © NQRC Few Citizens Complain, but…

21 © NQRC Complaints are Handled Poorly, and… Complaint Handling Score (0-100)

22 © NQRC Complaint Handling Impacts Satisfaction

23 © NQRC Customer Satisfaction and Trust in Government

24 © NQRC ●ACSI measures both agency trust (trust with the specific agency experienced), and overall trust (trust in the Federal government as a whole). ●Overall trust measured by asking: “Generally speaking, how much of the time do you think you can trust the government?” Agency-Specific Trust vs. Overall Trust

25 © NQRC Agency and Overall Trust

26 © NQRC Agency Trust Customer Satisfaction (ACSI) Customer Satisfaction (ACSI) Overall Trust in Federal Government Overall Trust in Federal Government Agency and Overall Trust ●Customer Satisfaction has a very strong direct impact on trust in a specific agency ●Customer Satisfaction has no direct impact on overall trust in government, but has a small indirect impact via agency trust

27 © NQRC ACSI For more information, visit the ACSI website at: